The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has welcomed early signs of macroeconomic stabilization reflected in the Federal Budget 2026-27, while calling for a stronger policy shift toward sustained industrial expansion and investment-led economic growth.
In its post-budget reaction, the federation noted that the presentation of a Rs18.7 trillion federal budget signals policy continuity and improving macroeconomic conditions, including moderate GDP growth, a narrowing fiscal deficit, and reduced pressure on debt servicing.
The business body stated that while the economy appears to be moving toward stability, the next phase must focus on transitioning from stabilization to long-term growth, productivity enhancement, and export expansion.
The FPCCI acknowledged several measures aligned with its earlier recommendations, including relief for salaried individuals, revisions in super tax slabs, removal of certain levies on international travel and foreign assets, and incentives aimed at boosting IT exports and facilitating construction-related transactions.
It also described the introduction of a simplified taxation framework for small retailers as a positive step toward expanding the formal economy and improving compliance.
However, concerns were raised over the Federal Board of Revenue’s elevated revenue target of Rs15.2 trillion and the increased petroleum levy target. The federation cautioned that aggressive revenue collection goals could contribute to inflationary pressure, particularly in an environment already affected by high energy costs.
The FPCCI further pointed to structural gaps in the budget, including the absence of measures to restore export-friendly tax regimes, reduce corporate tax burdens, remove certain minimum tax structures, and advance broader digital economy reforms.
The federation also highlighted persistent economic challenges, noting that investment and savings ratios remain subdued while rising urban poverty continues to reflect deeper structural constraints within the economy.
A final position will be issued after detailed consultations with member chambers and trade bodies following a comprehensive review of the Finance Bill in the coming days.
Reaffirming its stance, the business community expressed its commitment to working with policymakers to support a more competitive, export-driven, and sustainable economic framework for Pakistan’s long-term economic development.
